Phoenix Petroleum posts 13% income hike

MANILA, Philippines - Local oil firm Phoenix Petroleum Philippines Inc. said its net income increased 13 percent to P54.02 million in the first half of 2009, pumped up by higher sales volume during the period.

Revenues rose 17 percent from P1.88 billion last year to P2.22 billion this year, the Davao-based company noted.

“Our first-half performance is in line with our targets as we aim to be the leading independent oil company in the country,” company president and CEO Dennis Uy said.

Sales volume jumped 84 percent due to the increase in the number of retail stations. Phoenix ended 2008 with 86 stations and now has 112 stations.

Uy said the company is targeting a total of 128 stations by year end as it has been getting good feedback for station dealerships.

Company assets increased 55 percent from P2.368 billion in December 2008 to P3.663 billion in June 2009 with the acquisition of Bacnotan Industrial Park Corp. (BIPC) in March.

As a result, earnings per share rose to P2.99 in June 2009, way above the 91-centavo mark set in December 2008. This drove net book value per share to 6.74, almost double the 3.75 level in December last year. Return on equity was robust at 57 percent, more than twice the previous rate of 24 percent at the end of 2008.

Thus, net income after recognizing the “excess of fair value over acquisition costs” grew to P551.2 million, soaring 1,052 percent from June last year.

Phoenix is engaged in the business of trading refined petroleum products, lubricants, chemicals and an array of car care products and accessories. It also provides services such as depot operation, depot storage, logistics, into-plane and allied services. It was listed on the Philippine Stock Exchange in July 2007, the first oil company to do so since the passage of the Downstream Oil Industry Deregulation Act in 1998.